Investing

Midday Meme Stock Report for 11/17: Camber Energy, Cassava Sciences, Rivian, Tesla and More

All three major U.S. stock indexes traded lower at noon Wednesday. One reason for the dip could be a letter from President Biden to FTC Chair Lina Khan, asking Khan to “consider whether illegal conduct” by oil and gas companies is “costing families at the pump.” The president noted in his letter that while the cost of unfinished gasoline has fallen by 5% in the past month, pump prices are up 3%. Crude oil prices have dropped below $79 a barrel, even though U.S. crude inventories fell by more than 2 million barrels last week. Bitcoin dipped closer to the $60,000 level, and 10-year Treasury yields had dipped by about one basis point as well.

Meme stocks mostly traded down in the noon hour Wednesday. The hardest hit was Cassava Sciences Inc. (NASDAQ: SAVA). The Wall Street Journal reported earlier in the morning that the company disclosed in a filing with the Securities and Exchange Commission (SEC) that a federal agency has begun an investigation into charges that Cassava manipulated research data on its experimental Alzheimer’s drug. Citing people familiar with the matter, the report says that the agency is the SEC.

Camber Energy Inc. (NYSEAMERICAN: CEI) stock topped Wednesday’s advancing meme stocks. As we noted in our morning look at these stocks, a company that has licensed its technology to Camber has defended itself against a short seller report calling the license “nearly worthless.”

After a four-day string of higher closing prices, electric vehicle maker Rivian Automotive Inc. (NASDAQ: RIVN) traded down by double-digits in the noon hour Wednesday. The stock closed Tuesday at $172.01, more than double the IPO price of $78. Whether the decline is simply profit-taking (and who could blame someone for that) or a signal that early buyers paid too much remains to be seen.

Tesla Inc. (NASDAQ: TSLA) traded lower than most other EV stocks in Wednesday’s premarket session, but it was the only one trading in the green as the noon hour came to an end. Luxembourg-based Arrival (NASDAQ: ARVL) announced a secondary offering of 25 million shares in the morning, and the stock tumbled by around 20%. Lucid Group Inc. (NASDAQ: LCID) traded down nearly 8%, Workhorse Group Inc. (NASDAQ: WKHS) was off by about 4.7% and Nio Inc. (NYSE: NIO) traded down about 3.6%. Does this mean investors have now accepted that Tesla is still the 600-pound gorilla in EVs?

Cassava Sciences stock traded down about 22% to $48.14 as the noon hour drew to a close Wednesday. The stock’s 52-week range is $6.70 to $146.16. The average daily trading volume is about 8.4 million shares, and almost 10.5 million had been traded on the day.

Shares of Camber Energy traded up about 25%, at $1.39 in a 52-week range of $0.33 to $4.85. The average daily trading volume is nearly 204 million shares. Some 179 million had already traded Wednesday.

Rivian stock traded down about 6.5% to $143.70, in a post-IPO range of $95.20 to $179.47. The average daily trading volume is about 79.3 million shares, and more than 54 million had changed hands thus far.

Tesla stock traded up about 2.2% to $1,078.02, but it traded at a high of $1,119.64 (up about 6%) earlier in the day. The average daily trading volume is about 23.5 million shares, and more than 21 million had traded.